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Euro-dollar rate flat amid equities selloff

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(Globalpost/GlobalPost)

The euro-dollar rate was little changed while the yen gained amid a broad sell-off in European and US equities Thursday that was driven in part by eurozone growth worries.

The main movement of the day in financial markets was from stocks and other risk assets to quality bonds. That pushed down yields on US Treasuries; the 10-year bond hit 2.48 percent during the day, a low last seen in October.

Eurostat reported that gross domestic product across the 18-nation eurozone grew by just 0.2 percent in the three months to March, dashing market expectations for 0.4 percent expansion.

However, the German economy sprinted ahead at an 0.8 percent pace.

"GDP figures largely disappointed, with only the German release providing any upside to the data," said Alpari trader Craig Erlam.

"That's pretty much in line with what we've become accustomed to: a two-tier eurozone with Germany the engine behind any growth."

The data gave strength to expectations that the European Central Bank will ease monetary conditions to fight off disinflation in its next policy meeting. Analysts expect that will ultimately help boost the US dollar, benefiting from stronger growth in the US economy.

At 2100 GMT Thursday Wednesday

EUR/USD $1.3711 $1.3713

USD/JPY 101.57 yen 101.87 yen

EUR/JPY 139.26 yen 139.70 yen

GBP/USD $1.6790 $1.6769

EUR/GBP 0.8165 pound 0.8178 pound

USD/CHF 0.8909 franc 0.8897 franc

EUR/CHF 1.2214 franc 1.2202 franc

bur-pmh/vs

http://www.globalpost.com/dispatch/news/afp/140515/euro-dollar-rate-flat-amid-equities-selloff